ISIS militants paraded severed heads from the back of a pick-up truck after seizing control of a fourth Libyan city in the Mediterranean country, according to eyewitnesses.

Locals say jihadists drove through the coastal town of Bin Jawad shouting 'Allahu akbar [God is great]' from the gruesome convoy.

A number of residents fled in terror last week, not long after the town fell into the terror group's hands, while others were ordered into a sports stadium. Their fate is unclear.

Gruesome convoy: ISIS militants paraded severed heads from the back of a pick-up truck after seizing control of the Libyan town of Bin Jawad (pictured, file photo). It is the fourth Libyan city to fall to the terror group

It is feared ISIS may now try to seize more oil installations in the region, according to Mark Willis at The Sunday Times.

The terror group's black flag was raised in Bin Jawad the same day ISIS fighters attacked the oil ports of Ras Lanuf and Sidra on January 4.

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Heavy weapons and suicide bombers, including a 15-year-old boy, were used as part of the assault, which left two storage tanks of crude oil on fire.

Bin Jawad is 20 miles from Sidra and 36 miles from Ras Lanuf, leading to concerns the town could be used by ISIS to stage similar attacks.

It was captured earlier this month, with hundreds of government workers rounded up by the terrorist group and many families forced out of their homes.

One eyewitness who escaped Bin Jawad told The Sunday Times: 'They drove through the town after Friday prayers with men in the back of pick-ups holding severed heads and shouting, "Allahu akbar [God is great],"

Concern: ISIS's black flag was raised in Bin Jawad the same day its fighters attacked the oil ports of Ras Lanuf and Sidra on January 4 (file photo). It is feared the terror group may now try to seize more oil installations

'I counted three heads.'

Other residents were told their homes now 'belonged to Islamic State' and that they had to leave.

Most of the 200 local men arrested had worked for security forces or government ministries, with relatives now fearing for their loved ones' safety.

ISIS also raided shops, seizing cigarettes and destroying them on a large bonfire.

An Egyptian worker was publicly lashed 80 times after being caught smoking on the street, while residents also described similar atrocities being carried out as those witnessed by civilians in ISIS strongholds in Iraq and Syria.